If Stock Is Issued for an Asset Other Than Cash,the

question 3

Multiple Choice

If stock is issued for an asset other than cash,the asset should be recorded on the books of the corporation at:

• A)fair market value of the asset.
• B)book value of the asset.
• C)par value of the stock.
• D)fair value of the stock minus the par value of the stock.

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Definitions:

Marsupials

Mammals that carry and nourish their newborns in an external pouch, including species such as kangaroos, koalas, and opossums.

Placentals

Mammals that nourish their developing fetus via a placenta, an organ that facilitates the exchange of nutrients, gases, and wastes between the mother and fetus.

Notochord

A flexible rod-shaped structure that provides support in the embryonic stages of all chordates, including humans.

Tunicates

Marine invertebrates, also known as sea squirts, that are part of the subphylum Tunicata, characterized by a tough outer tunic and filter-feeding mode of nutrition.